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Ovum report points to data management as the key to telecoms operators' future profitability and agility

'Dialling into Telco data' charts how new approaches to data management and specifically 'Big Data' can open new revenue streams and help telecos address revenue erosion

17 September 2012 - A recent report authored by OVUM and commissioned by SAS, 'Dialing into Telco Data', examines how reliable data management can transform a Communication Service Provider's (CSPs) data assets from an IT necessity, for network administration and service delivery, into a powerful business revenue driver. It also examines the impact of exponential data growth and the opportunities the onset of 'Big Data' present to the industry.

According to the report, some operators now see themselves transforming into companies that first and foremost manage data, providing communication services as a secondary activity. In particular, the report discusses how CSPs must apply data management principals in order to generate alternative sources of revenue: "Data management initiatives are less about IT and more about driving business profitability". The report claims that service providers must treat their data as a strategic asset – "the oil that will fuel their future growth".

Ken King, Director of Telco and Media convergence at SAS, commented: "CSPs are in a period of transition where they need to both 'keep the lights on' by offering high quality traditional services whilst concurrently investing in new services like Machine to Machine, Mobile Commerce and Enterprise Cloud that will drive future profitability. Solid data management and benefiting from the Big Data explosion are pre-requisites for this journey. Incorporating high-performance computing and analytical intelligence into the data management process further propels CSPs to succeed."

New revenue streams driven by advanced data management and the Big Data opportunity include:

"Piggy back" services: which allow communication service providers to offer value-added services to customers including banks, retailers and call centre operators that are packaged as part of core voice and data products.

Targeted advertising and marketing: with the ability to supply integrated data sets that give advertisers more effective ways of delivering relevant marketing messages and offers based on customer profiles, device type and location.

Secure identity and billing: CSPs can leverage well managed subscriber profile data with connected business partners in order to provide a ‘trusted gateway’ for securely managing bills for online services and purchases through their devices or a single phone bill.

Shagun Bali, Ovum Telecoms IT Analyst, and one of the report's authors, added: "CSPs face huge challenges in an increasingly saturated market where commoditisation is an impending threat. Since most core telco services are information driven data management is a necessity rather than a luxury in today's market. Having a strong data management competency separates the leaders from the followers. CSPs that are best able to manage their data assets, and leverage opportunity from a deluge of new Big Data sources, will be best poised for success in the coming era of new data-driven services.

To download the report please visit: 

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